Ferrari
Image: Supplied
Millstock Cars, a dealership in Cape Town, is challenging a National Consumer Commission (NCC) ruling that mandates them to refund more than R269,000 to a customer for repairs made to a faulty Ferrari.
The issue started when M Gambale purchased a used Ferrari for over R3.6 million in April 2021.
However, just five months after the purchase, the car displayed a warning light and was diagnosed at Ferrari Cape Town with a faulty temperature sensor, requiring replacement at a cost exceeding R53 000.
The dealership initially argued that the car was sold "voetstoots" (as is), thus denying liability for the sensor replacement.
However, after negotiations, Millstock agreed to cover 50% of the repair costs and paid a deposit to Ferrari Cape Town.
According to Gambale, after Millstock confirmed it would pay for the replacement of the sensor, the manufacturer, Ferrari Italy, identified an underlying issue with the Clutch Control Plane (CCP) and recommended that the entire CCP be replaced.
Gambale demanded that Millstock pay for the replacement of the CCP, which was quoted at over R269 000.
However, the dealership refused this request, prompting Gambale to escalate the matter to the NCC.
Upon reviewing the case, the NCC sided with Gambale, issuing a notice demanding that Millstock refund the repair expenses for the CCP.
In response, Millstock appointed consulting engineer and tribologist, Patric Swan, who found no evidence of mechanical damage or wear, asserting that the original diagnosis of a faulty sensor was accurate.
A second witness, a service manager at Ferrari Cape Town, Vito Viglietti, said the car was connected to Ferrari Italy’s system, and they confirmed that the sensor was indeed defective.
Viglietti testified that the manufacturer indicated that it would not honour any warranty extension on the vehicle if the CCP was not replaced.
He also said the manufacturer never confirmed the underlying issue that caused the sensor to malfunction, but they told Ferrari Cape Town to proceed to replace the CCP.
In its submissions, Millstock asserted that the NCC’s notice was based on a flawed assessment, pointing to Swan’s report, which highlighted the absence of any mechanical defect in the CCP.
They further stated that the NCC neglected to consider that Gambale's vehicle was an aged, second-hand model.
In his reply, Gambale maintained that Ferrari’s diagnosis suggested an inherent issue with the CCP, which required replacement to ensure long-term functionality and warranty considerations.
After deliberation, the National Consumer Tribunal (NCT) expressed uncertainty as to whether the NCC had properly considered Swan’s report.
In the tribunal’s view, if Swan's report had been properly considered, the notice would not have stated that the vehicle had broken down due to a clutch failure.
Having considered the evidence, including the oral testimonies from Swan and Viglietti, the tribunal said it was of the view that it cannot be concluded that the CCP was defective or that it was necessary to replace it.
Based on the tribunal's findings, the NCC's notice was cancelled.
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